What a lovely country the Netherlands is! The government says, “Even though we do not know who you are, we are sure we can determine your minimum salary based on your skills and how old you are - before we have even been introduced. And we can change it too!” How does that work, and what applies in your case in 2018?
Minimum wage for Dutch citizens
The Netherlands sets a minimum salary for Dutch citizens based on age, the so-called Wettelijk Minimum Loon. Usually this minimum wage changes every January 1 and halfway through each year. This minimum wage applies if you are working in the Netherlands as a Dutch citizen or if you are working on your partner’s residence permit. Of course an employer can pay you more, but this is the legal minimum.
The minimum wage for 2018
These amounts do not include the mandatory 8 percent holiday allowance. That amount can be paid monthly or in one payment per year on top of the minimum wage mentioned above. If you don’t work 40 hours a week, but 38 or 36, your hourly rate will be different.
Expat knowledge migrants
One of the most important conditions for residency is the salary level of a highly skilled migrant. The salary level requirement is affected by the age of the knowledge migrant.
Highly skilled migrant salary requirements
- Highly skilled migrants aged 30 years and older must earn a minimum of EUR 4.404,00 gross per month, excluding the 8 percent holiday allowance.
- Highly skilled migrants under the age of 30 must earn a minimum salary of EUR 3.229,00 gross per month, excluding the 8 percent holiday allowance.
Highly skilled foreigners who start work in the Netherlands within a year of graduating (zoekjaar migrants) must earn a minimum salary of EUR 2.314,00 gross per month, excluding holiday allowance.
Note: Please be aware that there are other requirements besides the gross salary level to qualify for knowledge migrant status.
Expats and the 30% ruling
If you are from outside the EU and you are already working as a knowledge migrant, then you are already earning the required 30% ruling salary, as the IND salaries are higher than the 30% salary requirements. However, in some specific cases, you might need to get a salary adjustment in the new year!
Salary criteria for the 30% ruling in 2018
- The annual taxable salary for an employee older than 30 must be more than EUR 37.296,00. In 2017, this was EUR 37.000,00.
- The taxable salary for an employee who is younger than 30, and has master’s degree, must be more than EUR 28.350,00 per year. In 2017, this was EUR 28.125,00.
Please note: Qualification for the 30% ruling is not only based on your gross salary amount; there are other requirements that apply.
Does your salary need to be increased before January 1, 2018?
Does your salary need to be increased for the IND requirements? No, the salary that was based on your age at the time your current employment started continues to apply as the minimum salary.
However, if you are benefitting from the 30% ruling, it’s important to note that the salary requirement applies to your current earnings (not the salary you earned when you started your current employment). So if you were earning exactly the 30% salary minimum for 2017, this salary does need to be increased in 2018.
Visit Payingit International to learn more about the salary requirement and holiday allowance obligations, or details on salaries and the 30% ruling.
Do you have a question? Fill in the form below and Payingit International will show you how it all works.